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life of 6 years. Happy Company used straight-line depreciation with an estimated salvage va of $0. Happy Company is subject to an income tax rate of 60%. Happy Company sold the machine on 1/1/25 (after using the machine for exactly 2 full years.) In the next 3 questions, are to determine the Net Cash Inflow (NCF) from the sale of the machine on 1/1/25.

life of 6 years. Happy Company used straight-line depreciation with an estimated salvage va of $0. Happy Company is subject to an income tax rate of 60%. Happy Company sold the machine on 1/1/25 (after using the machine for exactly 2 full years.) In the next 3 questions, are to determine the Net Cash Inflow (NCF) from the sale of the machine on 1/1/25.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please help me with show all calculation thanku 

Happy Company bought a new machine that cost $120,000 on 1/1/23. The machine had a useful life of 6 years. Happy Company used straight-line depreciation with an estimated salvage value of S0. Happy Company is subject to an income tax rate of 60%. Happy Company sold the machine on 1/1/25 (after using the machine for exactly 2 full years.) In the next 3 questions, you are to determine the Net Cash Inflow (NCF) from the sale of the machine on 1/1/25.
Transcribed Image Text:Happy Company bought a new machine that cost $120,000 on 1/1/23. The machine had a useful life of 6 years. Happy Company used straight-line depreciation with an estimated salvage value of S0. Happy Company is subject to an income tax rate of 60%. Happy Company sold the machine on 1/1/25 (after using the machine for exactly 2 full years.) In the next 3 questions, you are to determine the Net Cash Inflow (NCF) from the sale of the machine on 1/1/25.
2. If the machine was sold on 1/1/25 for $75,000, the Net Cash Inflow (NCF) is: A. $78,000 B. $76,000 C. $75,000 D. $77,000
Transcribed Image Text:2. If the machine was sold on 1/1/25 for $75,000, the Net Cash Inflow (NCF) is: A. $78,000 B. $76,000 C. $75,000 D. $77,000
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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